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BlackRock Smll Cos (BRSC)

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Tuesday 03 December, 2019

BlackRock Smll Cos

Fixed Rate Borrowing

BlackRock Smaller Companies Trust plc

3rd December 2019

 BlackRock Smaller Companies Trust plc 

Fixed Rate Borrowing

BlackRock Smaller Companies Trust plc (‘the Company’) has agreed to issue £20 million in senior unsecured GBP denominated fixed rate private placement notes (the "Notes") at an annualised coupon of 2.41% with a 25-year bullet maturity. The funding date for the Notes is today, 3rd December 2019 and the Notes will be due for repayment on 3rd December 2044.

The net proceeds from the Company's issuance of the Notes will be used to repay existing indebtedness and for general corporate purposes.

The Company considers obtaining such Sterling denominated financing on an unsecured basis at this price level and at a 25-year term to be highly attractive. Furthermore, the issuance of the Notes has the advantage of balancing the maturity profile of the Company's liabilities.

In addition to the Notes, the Company has a range of borrowings and facilities in place to provide balance between longer term and short term maturities and between fixed and floating rates of interest. Fixed rate funding now consists of the Company’s existing £15 million debenture, which matures in 2022, £25 million senior unsecured fixed rate private placement notes issued in May 2017 at a coupon of 2.74% and the new Notes maturing in 2044 as described above. Shorter term variable rate funding consists of a £35 million three-year revolving loan facility with Sumitomo Mitsui Banking Corporation Europe Limited and an uncommitted overdraft facility of £10 million with Bank Of New York Mellon (International) Limited.

It is the Board’s intention that gearing will not exceed 15% of the net assets of the Company at the time of the drawdown of the relevant borrowings. Under normal operating conditions it is envisaged that gearing will be within a range of 0%-15% of net assets.  The Company’s net gearing currently stands at 2.3% of net assets.

All enquiries:

Ms S Beynsberger
for and on behalf of BlackRock Investment Management (UK) Limited
Company Secretary

Tel: 0207 743 2639

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